It is also known as columnar Trading Account.
Departmental Store:
Use of Departmental Accounts: If trading A/c is prepared by adding all departments’ figures of purchases, sales etc, we won’t be able to know how much Gross profit (Loss) is made by each department.If Gross Profit is calculated taking the figures separately, we can see how well or how badly each part of business is doing.It is very useful for decision making
Format of Departmental Trading Account This is similar to Vertical format of Trading A/c. E.g.: S.Deen’s super store has two departments of clothing and Jewelry. S.Deen’s super store Trading A/c for the year ended ……………………… Most of the times, departmental trading account will appear as follows as few items of trading A/c are given, Suppose opening stock, Purchases, sales and closing stock, S.Deen’s super store Trading A/c for the year ended ……………………… |
Exersise of departmental Account
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